In the past five years, the global cost of living has dropped from 85.5% to 74% — great news expats and expats-to-be, isn’t it? How ever, before we cause a stir, we would like to point out that even though during 2017 the world witnessed the fastest economic growth since 2011, the cost of living is fluctuating depending on various indicators; and it’s often quite unpredictable. This article looks into the ten most expensive cities for 2018, stemming from the Worldwide Cost of Living report, which has studied 133 cities and the prices of 160 products and services. Money, they say, don't bring happiness. What if, in some cities, they do?
Singapore
For the fifth consecutive year, Singapore ranks as the world's most expensive city. Singapore's number one position comes as no surprise, considering that one-third of the city-state's workforce are expats, who get in with their consumption habits and different salaries. The foreign professionals and international talent who top the city, tend to purchase imported products, which are inevitably more expensive. Also, expatriates in Singapore raise the demand for accommodation whereas the offer is limited — a parameter leading to high rental costs. Singapore stands out for its first-class education system and the prominent yet costly international schools, which are highly preferred by expat parents. On the other hand, the EIU report suggests that personal care, household goods, and domestic help in Singapore are significantly cheaper when compared to other Asian countries.
Paris
The French capital and City of Light, Paris is the second most expensive city in 2018, climbing up five places in one year. Paris is the only European city in the top ten, whose currency is the Euro. While bread and petrol are more expensive in Paris than in most of the other top ten cities, alcohol and cigarettes “offer value for money”, as stated in the report. Precisely, a bottle of wine in Paris costs USD 11.90 — a price which is almost double in Singapore, Seoul, Tel Aviv, and Sydney. It's true that strolling along one of the most beautiful avenues in the world, Champs-Élysées, comes at a price, but we think it's worth it. Do you?
Zurich
Zurich is also in the second position, sharing the same index score with Paris, and adding to the number of European cities in the top ten, while American and British cities are entirely absent. Switzerland as a whole has always been known as an expensive and luxurious country, acknowledged for excellence in its products and high quality of life, with an emphasis on family and outdoors activities. Thus, next time you fret about how expensive bread is in Zurich, think of all those benefits that come with living in this high-developed and robust economy, such as the balance between personal and professional life, low corporate taxes, high salaries, and a thriving service and tech sector.
Hong Kong
Newbie expats in Hong Kong might be left startled when they find out that a one-kilogram loaf of bread costs USD 4.16 and a bottle of wine USD 16.16. But, the primary factor which makes Hong Kong one of the most expensive cities in the world is the skyrocket accommodation costs. In this densely populated financial hub, expats face the problem of high demand and limited supply when it comes to choosing their home away from home. Another reason which leads to high prices and therefore brings Hong Kong on the top five most expensive cities is the fact that many goods, including clothes, are imported. However, if you are planning to move to Hong Kong, look at the bright side of this popular expat destination — The HK Dollar is a stable currency, and the city has one of the most friendly tax revenue systems in the world.
Oslo
A quote by Erling Røed Larsen, a professor of Economics and Norwegian author, perfectly explains Oslo's position as the fifth most expensive city in the world. “High prices go hand in hand with a high standard of living”, Mr Larsen says. Indeed, Norway has one of the lowest unemployment rates globally and is home to a pioneering taxation system, which prevents income inequality. Alcohol is extremely expensive in Oslo due to the high taxes applied to control excessive consumption of alcohol. Also, Oslo has the highest price per one litre of unleaded petrol amongst the nine most expensive cities in the world, which is unique for an oil-producing country like Norway. Again, heavy taxation comes as the government's solution to convince the population to make environmentally-friendly decisions, such as use the public transport or purchase electric cars instead.
Geneva
Geneva, in number six, is the second Swiss city featured in the top ten of the most expensive cities in the world for similar reasons as Zurich. However, while bread is significantly more expensive in this global diplomacy and banking hub than in Zurich, a bottle of wine is almost half price in Geneva. On the other hand, the cost of cigarettes and petrol is virtually the same in both cities. The scenic location of Geneva, surrounded by the Alps and the Jura mountains, and with the views of Mont Blanc pay back for the overpriced diners, home rents, transport, utility bills, etc.
Seoul
Seoul has maintained its ranking from 2017, and this year comes at the same place (6th) with Geneva. This is a significant jump for the capital of South Korea, considering that only five years ago it was in the 21st place. Along with Tokyo and Hong Kong, Seoul is the most expensive place to buy staple goods, such as food, beverages, tobacco, and household items. When compared to New York City, which has been used as a reference for EIU's report, filling up your grocery basket in Seoul is almost 50% more expensive.
Copenhagen
The small capital city of Denmark with a population of just over 1.5 million is among the most expensive cities in the world due to the costly transport and the high recreation and personal care costs. However, Copenhagen remains a popular expat destination thanks to the excellent quality of life which comes with the minimalistic design, the clean environment, and some of the happiest people in the world. In Copenhagen, you may pay high taxes and overpriced city passes for your daily commute, but the efficiency of all services, including the healthcare, compensate for the overall costs and lead to satisfied citizens. And if you wish to save money in your everyday life, you can opt for a bike-sharing scheme instead, delicious street food, and free alfresco events during the summer months.
Tel Aviv
The vibrant city of Tel Aviv is the only Middle Eastern city in the list, which just like Seoul, climbed dramatically in just five years' time, from place 34 to 9. The costs that drive up prices are those of buying, insuring and maintaining a car. Tel Aviv is also the second most expensive city when it comes to buying alcohol with a bottle of wine starting at USD 28.77.
Sydney
Sydney is the first Australian city on the list, renown among surfers (and not only) for its beaches; and it is a popular expat destination thanks to the abundance of leisure activities and the general well-being of its population. However, expats soon realise that all the entertainment and options come at a high cost. Due to the population's growth and high demand for housing, as well as income growth, accommodation in Sydney is extremely costly. Sydney's tobacco and alcohol are some of the most expensive in the world. However, unleaded petrol prices are quite reasonable (USD 0.98 per litre) when compared to the average USD 1.5 in the other nine cities.
